Question: Please answer all and explain all will rate Philadelphia is the home of the cheesesteak sandwich, and two of the most popular restaurants that serve

Please answer all and explain all will rate Philadelphia is the home

Please answer all and explain all will rate

Philadelphia is the home of the cheesesteak sandwich, and two of the most popular restaurants that serve cheesesteaks, Pat's and Geno's, are bitter rivals located across the street from each other. (Although there are other establishments that serve cheesesteaks, assume that these are the only two whose market shares we are considering.) Both restaurants have very loyal customer bases: according to market research, 71% of the customers who purchased a Pat's cheesesteak this month will continue to eat at Pat's next month, while 63% of the customers who purchased a Geno's cheesesteak this month will continue to eat at Geno's next month. In the previous month (March), 57% of cheesesteak eaters went to Pat's. (a) Determine the predicted market shares for the two restaurants for this month (April). (Include at least three decimal places in your answers.) (b) What are the predicted equilibrium market shares for the two restaurants? (Include at least three decimal places in your answers.)

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